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Western Cape hotels are now 11% cheaper than they were a year ago, while Gauteng rooms are pricier

Phillip de Wet , Business Insider SA
 Jun 20, 2018, 12:12 PM
Year-on-year hotel price changes according to inflation data for May 2018 released by Statistics SA.
  • Inflation data released by Statistics South Africa shows hotel prices in the Western Cape dropped by 11.2% between May 2017 and May 2018.
  • Hotel prices increased by 0.6% nationally, and by 4.5% in the North West.
  • Tourism minister Derek Hanekom says 'Day Zero' messaging scared tourists away from Cape Town.

Consumer price index (CPI) data published by Statistics South Africa on Wednesday shows hotel prices in the Western Cape fell by 11.2% between May 2017 and May 2018. 

The Western Cape numbers are starkly different from those recorded in the rest of the country. The Northern Cape and Mpumulanga both saw small drops in prices – but the national average price of a hotel room increased by 0.6% during the same period.

In Gauteng prices were up by 3.5%, and in the North West prices increased by 4.5%. 

The price decreases in the Western Cape came despite hotels spending heavily on new water infrastructure.

Foreign tourist arrivals to South Africa have continued to decline during 2018 to date, by nearly 7% according to the most recent figures. Occupancy levels, especially in five-star hotels in Cape Town, are also down.

This week, tourism minister Derek Hanekom said Cape Town's heavily-publicised drive to avoid a "Day Zero" scenario – though it had been necessary – scared off foreign tourists.

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